Amendment 11 'another tool' for economic development, supporters say

Among the items on tomorrow's ballot is Amendment 11, which government and business leaders in Alabama hope passes muster with voters longing for economic opportunity.

The measure, which is related to the Major 21st Century Manufacturing Zone Act, will give Alabama communities the power to designate certain areas as 21st Century Manufacturing Tax Increment Financing (TIF) zones.

Those communities can use TIF revenues for redevelopment, revitalization or acquisition of property, rehabilitation or conservation. For example, a local government can pledge a projected increase in future property tax revenue to finance land acquisitions. The government entities could then sell the property to developers.

Supporters say this would aid in reclaiming blighted areas and create zones for industrial development. It would also allow municipalities to invest in the infrastructure of roads, sewer, rail and drainage improvements within TIF districts.

How is it different from the past? The original legislation required cities or counties to sell the properties at "fair market value." That way, government would not be seen as investing in private enterprise, which would violate the Constitution.

The amendment would allow governmental bodies to determine sale prices for property, according to the Public Affairs Research Council of Alabama.

Earlier this year, Huntsville business leaders began pushing for the amendment's passage, saying it would have benefited the area in attracting industry. Modifying TIF legislation became a priority nearly a decade ago when Huntsville lost Volkswagen's first U.S. automotive plant to a site in Chattanooga, Tenn.

But other parts of the state are hopeful. Ellen McNair, senior vice president for corporate development at the Montgomery Chamber, said leaders are already discussing how the TIFF provisions could be used for some projects if the amendment passes.

"We've been looking at how it can be useful in the future, running some numbers," she said.

Jeremy Arthur, president and CEO of the Alabama Chamber of Commerce Association of Alabama, said the provisions of the amendment would be "another tool in the toolbox."

"It would keep us competitive for regional projects, and you can imagine how important those are," he said. "If you're dealing with a 250-acre site and a $100 million investment, that's hundreds of jobs involved in something that size, and what that means for a community."